95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB4959


 
Introduced , by Rep. Karen May
 
SYNOPSIS AS INTRODUCED:
 		














40 ILCS 5/1-113.4









    Amends the Illinois Pension Code. In provisions concerning permitted investments for pension funds
with net assets of $5,000,000 or more, (i) removes provisions requiring that securities are of a corporation created or existing under the laws
of the United States or any state, district, or territory thereof and that the issuer of the stocks has been subject to the requirements of
Section 12 of the federal Securities Exchange Act of 1934 and has been current
with the filing requirements of specified Sections of that Act during the
preceding 3 years and (ii)  increases the maximum percentage of the market value of the pension fund's net present assets  in certain investments from 35% to 50% if the fund utilizes an investment management consultant or an investment manager. Effective immediately.
















LRB095 14867 AMC 40808 b

















PENSION IMPACT NOTE ACT MAY APPLY
















 


 


A BILL FOR









 











HB4959

LRB095 14867 AMC 40808 b






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    AN ACT concerning public employee benefits.

 
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    Be it enacted by the People of the State of Illinois,
 
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represented in the General Assembly:


 
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    Section 5. The Illinois Pension Code is amended  by changing 
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Section 1-113.4 as follows:
 



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    (40 ILCS 5/1-113.4)



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    Sec. 1-113.4. List of additional permitted investments for 
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pension funds
with net assets of $5,000,000 or more.

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    (a) In addition to the items in Sections 1-113.2 and 
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1-113.3, a pension fund
established under Article 3 or 4 that 
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has net assets of at least $5,000,000 and
has appointed an 
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investment adviser under Section 1-113.5 may, through that

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investment adviser, invest a portion of its assets in common 
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and preferred
stocks authorized for investments of trust funds 
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under the laws of the State
of Illinois.  The stocks must meet 
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all of the following requirements:


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        (1) The common stocks are listed on a national 
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    securities exchange or
board of trade (as defined in the 
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    federal Securities Exchange Act of 1934 and
set forth in 
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    Section 3.G of the Illinois Securities Law of 1953) or 
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    quoted in
the National Association of Securities Dealers 
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    Automated Quotation System
National Market System (NASDAQ 
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    NMS).


 


 






HB4959
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        (2) The securities are of a corporation created or 
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    existing under the laws
of the United States or any state, 
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    district, or territory thereof and the
corporation has been 
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    in existence for at least 5 years.


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        (3) The corporation has not been in arrears on payment 
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    of dividends on its
preferred stock during the preceding 5 
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    years.


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        (4) The market value of stock in any one corporation 
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    does not exceed 5% of
the cash and invested assets of the 
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    pension fund, and the investments in the
stock of any one 
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    corporation do not exceed 5% of the total outstanding stock 
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    of
that corporation.


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        (5) The straight preferred stocks or convertible 
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    preferred stocks are
issued or guaranteed by a corporation 
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    whose common stock qualifies for
investment by the board.


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        (6) The issuer of the stocks has been subject to the 
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    requirements of
Section 12 of the federal Securities 
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    Exchange Act of 1934 and has been current
with the filing 
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    requirements of Sections 13 and 14 of that Act during the

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    preceding 3 years.

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    (b) A pension fund's total investment in the items 
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authorized under this
Section and Section 1-113.3 shall not 
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exceed 50% 35% of the market value of the
pension fund's net 
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present assets stated in its most recent annual report on
file 
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with the Department of Financial and Professional Regulation if 
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the fund utilizes an investment management consultant (a duly 
 


 






HB4959
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licensed employee of an investment manager) or an investment 
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manager as defined in Section 1-101.4 of this Code Illinois 
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Department of Insurance. If the fund does not utilize an 
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investment management consultant or an investment manager, the 
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total investments in the items authorized under this Section 
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and Section 1-113.3 shall not exceed 35% of the market value of 
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the pension fund's net present assets stated in its most recent 
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annual report on file with the Department of Financial and 
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Professional Regulation. 

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    (c) A pension fund that invests funds under this Section 
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shall
electronically file with the Division any reports of its 
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investment activities
that the Division may require, at the 
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times and in the format required by the
Division.

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(Source: P.A. 90-507, eff. 8-22-97.)

 

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    Section 99. Effective date. This Act takes effect upon 
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becoming law.